For proper management of the organization, you need to know a lot of statistical indicators. Instead of a thousand meaningless words, emotional beliefs and persuasion, the manager can look at numbers that objectively reflect the state of affairs and the work of the staff. Efficiency is, first of all, a statistical indicator. In this article we will talk about how to correctly and quickly measure it.
The main components of this indicator allow you to determine the effectiveness of the process at any organizational level. They can be used not only to evaluate the work of the company and its divisions, but also of individual employees. The KPI system (KPI) will allow you to accurately
evaluate the effectiveness. It will also save time on decision-making and setting next tasks. KPI also allows you to improve and build a competent
pay system.KPI from English translates as “key performance indicators”. To draw up such a system of indicators, it is necessary to fulfill a number of requirements. Firstly, each indicator should be clearly and clearly described, and not overlap with other indicators. Secondly, any norm or indicator should be achievable in the planned period of time; in other words, no need to try on
the role of Icarus, it is necessary to soberly assess the real situation. Thirdly, the indicator should be meaningful and reflect a specific organizational unit or process. Fourth, the indicator should lie within the framework of those people who are being evaluated. Fifth, indicators can reflect the activities of the entire company, that is, be general or private and reflect the work of individual divisions. In the latter case, they reflect the purpose of these units in order to accurately measure effectiveness. This simple list of requirements will avoid most common mistakes and increase the profit of the organization.
The effectiveness of the staff is primarily affected by his desire to be involved in the implementation of tasks. Personnel involvement can be achieved either through competent non-material motivation, or through monetary incentives. Therefore, we briefly describe how to apply the KPI system to the formation of wages. At the very beginning, you need to create a hierarchy of levels that work on
a specific project. For example, in the first place when creating a product or service, there may be a general director, in the second - management, and in the third - ordinary employees. Then you need to determine the calculation of indicators. As a rule, it is produced by dividing the organization’s profit by the number of costs. It is also necessary to draw up a system of ratings and bonuses, depending on how much the final project is completed. So, for example, 30% of the work performed can be rated at a “low score” at which there is no bonus accrual. If the work is done at 120%, then, accordingly, it receives a high score. Depending on the assessment, bonuses are awarded to each employee at the above established levels.
Do not forget that efficiency is a statistical indicator, so you need to study the economic, statistical and mathematical literature.